Suburban markets are leading the post-pandemic office sector recovery, with absorption hitting 2.2 million square feet in the first quarter.
By contrast, CBD office markets posted negative 2.6 million square feet of absorption during the same period. CBDs have struggled since the onset of the downturn, with vacancy rates rising by 470 basis points over the past eight quarters compared to 280 basis points in the suburbs.
Vacancy levels in CBD and suburban markets are now equal at 15%, marking a first for the metrics. But Colliers experts say the equilibrium can be attributed to a combination of more space being placed on the market in CBD locations as well as a higher share of new deliveries in those markets. Vacancy fell in 50% of suburban markets in the fourth quarter, and by 46% in CBD locations.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
